A Colorado Springs investment group headed by a local homebuilder has added to its portfolio by acquiring an east side apartment complex.
A limited liability company and partnership controlled by All Pro Capital Inc. paid $28.1 million this month to buy the 288-unit Village at Lionstone, southeast of Platte Avenue and Murray Boulevard.
Brian Bahr, All Pro's president and founder of Springs-based Challenger Homes, said the Pikes Peak region's multi-family market remains strong, which makes such acquisitions a smart investment.
Rents averaged a record $933 a month in the third quarter of 2015, according to the Colorado Division of Housing Meanwhile, the local vacancy rate fell to a 14-year low of 4.2 percent in the same period.
"The vacancy rate is very low in our market," Bahr said. "We feel rents are on the rise and we'll be able to gain value in the property by managing it efficiently."
Bahr's group bought the property from Seagate Colorado Partners of Colorado Springs, which was represented in the deal by CBRE Denver Multifamily Investment Properties.
The Village at Lionstone offers open floor plans, amenities and is near major highways such as Powers and Academy boulevards, Jake Young, a vice president with CBRE Denver Multifamily, said in a statement.
The complex was built in 1984, and includes a fitness center, clubhouse, spa, playground, carports and dog run. It also has a solar-power heated laundry facility, swimming pool, fire pit and barbecue areas. Its occupancy rate is 94 percent.
All Pro Capital also is developing a 46-unit apartment building on the west edge of downtown Colorado Springs and controls a six-unit apartment project in the center of town, Bahr said. All Pro Capital also owns 15 units that are part of an 80-unit apartment complex in Castle Rock, he said.
The group, made up of about 60 individual investors, also owns a 28,000-square-foot office building near Kansas City, Mo.; has contracted to purchase a 38,000-square-foot office building in the Briargate Business Campus on the Springs' north side; and is working with partners to develop a self-storage facility in Fountain, Bahr said.
The value of All Pro's portfolio now is $60 million, he added.
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